Out-of-court mechanism gains ground

Debts settled via the out-of-court mechanism reached 8.5 billion euros by end-October, recording an increase of 129.73% within a year and bringing the total number of successful settlements to 25,551.

The majority of the debts that have been settled to date, specifically two thirds, are settlements with the state, while one third of the debts are settlements with financial institutions - i.e. banks and management companies (servicers).

According to National Economy and Finance Ministry data, out of the €8.5 billion arranged to date, €5.3 billion is in bilateral arrangements - i.e. settlements of debts to the state - and €3.2 billion is in multilateral arrangements - i.e. settlements of debts to the state, banks and servicers - while €1.1 billion is also in bilateral arrangements pending confirmation of payment of the first tranche.

While a large part of the...